Asset-heavy property groups like HPL should have minimal key man risk

THE tycoon Ong Beng Seng has been in the corporate limelight here for years. His name, or OBS as he is popularly known, is linked with top hotels, high-profile takeover battles, as well as the bringing of the Formula 1 night race to Singapore.

Thus, it sent shockwaves throughout corporate Singapore when Hotel Properties Limited (HPL) announced early in the morning on Jul 14 that OBS was asked by the Corrupt Practices Investigation Bureau (CPIB) to provide information on his interactions with Minister for Transport S Iswaran, and that OBS was arrested and had posted bail.

Aged 77, OBS is a Singapore-based Malaysian billionaire. He is the co-founder of HPL, where he is the managing director. Based on latest corporate filings, OBS has a total interest of over 60 per cent in HPL.